Senate Bill 40, a measure to strengthen protections for tenants in manufactured-home communities, was presented to the Delaware Senate Housing and Land Use Committee on March 17, 2025, with sponsor Senator Brian Walsh outlining changes to enforcement and notice standards and members of resident, owner and legal-aid groups testifying in support.

The bill would make certain landlord violations unlawful practices under the Consumer Fraud Act when specified conditions are met and would allow tenants, groups of tenants or the Delaware Attorney General to file for receivership if landlords fail to address severe issues within five days of actual notice. Senator Brian Walsh said the bill also "allows the attorney protection about tenants' receivership petitions within 10 days of filing," and identified Senate Amendment 1, which removes the word "constructive" and retains "actual notice," as part of negotiated changes with stakeholders.

The measure was described in the hearing as developed with significant involvement from the Delaware Department of Justice and with buy-in from community owners. Patrick McGill, legislative director for the Delaware Manufactured Homeowners Association, urged support and highlighted the role of the ombudsman office, saying, "It is imperative to highlight the significance of the ombudsman office. Currently, this office operates with a sole individual, and we firmly believe that additional staffing would enhance its capacity and capability to serve more effectively." Robert Tunnell of Potnet Communities said the amendment clarifying notice "is a big, big deal," and John Whitelaw, advocacy director at Community Legal Aid Society, Inc., called the bill "an excellent opportunity for collaboration between the interests of the homeowners and the interests of the community owners."

Witnesses at the hearing emphasized two enforcement points: (1) oversight and inspection authority for environmental and health issues rests with the Delaware Department of Natural Resources and Environmental Control (DNREC), and (2) enforcement to compel remedies at the community level would be elevated through the Department of Justice's authority and the ombudsman role. McGill cited discussions at a joint affordable housing task force where "oversight and enforcement" were described as essential to prevent unhealthy and unsafe living conditions.

Senator Walsh told the committee the bill updates a prior effort, noting it was carried last year as Senate Bill 172 and "passed the full Senate" but did not become law in that session. No committee vote on SB 40 was recorded during the March 17 hearing; the item received presentation and public comment and will remain subject to the committee's further action in the legislative process. The committee did record approval of the minutes from the Jan. 29, 2025, meeting by voice vote before adjourning.

If enacted, SB 40 would 1) classify specified landlord failures in manufactured-home communities as unlawful practices under the Consumer Fraud Act when statutory conditions are met; 2) permit tenants, tenant groups or the Attorney General to petition for receivership if severe issues are not remedied within five days of actual notice; and 3) require the Attorney General to file protections regarding tenants' receivership petitions within 10 days of a petition's filing. The bill sponsor and witnesses repeatedly emphasized that the changes originated from negotiations among the Department of Justice, homeowners' advocates and community owners and that the amendment on notice language reflects that stakeholder work.

Public comment for the bill included statements from residents' and legal-aid advocates urging the committee's support and a representative of community owners expressing support for the revised notice language. The committee did not take a final vote on SB 40 at this hearing; lawmakers will determine next steps through the committee process and any subsequent floor action.